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2017 Supreme(All) 448

ALLAHABAD HIGH COURT
BEFORE : NAHEED ARA MOONIS, J.
MANISH SINGHAL ....Applicant
Versus
STATE OF U.P. AND ANOTHER ....Respondents
(Criminal Misc. Application No. 2159 of 2017, decided on 24th January, 2017)

Advocates:
Counsel :
Mohd. Aslam for the Applicant; A.G.A. for the Respondents.

Headnote:Negotiable Instrument Act, 1881—Section 138—Dishonour of cheque—Insufficient fund—Stop payment of cheque—Liability to pay amount—Any cheque issued towards repayment of debt or liability as a security, if dishonoured, drawer of cheque incurs liability for prosecution under Section 138 of Act—Merely because it was issued as a security, no ground to exonerate penal liability—Therefore, impugned order not suffer from manifest illegality to thwart legitimate prosecution. [Paras 12, 14, 15 and 16]

       Result; Application Dismissed.

       

JUDGMENT

Hon’ble Naheed Ara Moonis, J.—Heard learned counsel for the applicant, the learned AGA for the State and perused the record.

The instant application has been filed invoking the inherent power of this Court under Section 482 Cr.P.C. to quash the proceeding pursuant to the summoning order dated 19.2.2016 passed by the learned Additional Chief Judicial Magistrate, Shikohabad, District Firozabad in Complaint Case No. 1812 of 2015 (Dushyant Kumar Yadav, Director A.L.P. Milk Foods (Pvt) Limited v. Manish Singhal) under Section 138 of the Negotiable Instrument Act (hereinafter referred as “Act”), P.S. Shikohabad, District Firozabad.

2. The factual matrix of the case in short conspectus is that the opposite party No. 2 filed a complaint on 18.8.2015 before the Court of Additional Chief Judicial Magistrate, Shikohabad, District Firozabad which was registered as Complaint Case No. 1812 of 2015, under Section 138 of the Negotiable Instrument Act contending therein that the complainant-opposite party No. 2 had supplied milk food product worth of Rs. 7,98000/- to the applicant’s Firm M/s Chiya Riya Traders, Saharanpur and in discharge of payment of liability issued three cheques bearing Nos. 001476,001477 and 001478 of Rs. 2,50,000/- each dated 26.6.2015. Thereafter the aforesaid cheques issued by the applicant were presented by the opposite party No. 2 before the Bank which was returned with remark that fund is insufficient in the account of the applicant. This information was received by the opposite party No. 2 on 27.6.2015. Thereafter a registered legal notice dated 7.7.2015 was sent to the applicant with a request to pay the amount of cheques. The said notice was returned back undelivered to the opposite party No. 2 with the remark that it could not be served due to incomplete address of the applicant. The opposite party No. 2 again sent a legal notice dated 17.7.2015 which was duly served upon the applicant. Despite the notice duly served on 17.7.2015 the applicant did not make any payment nor sent any reply, hence the opposite party No. 2 filed a complaint on 18.8.2015 before the Court of Additional Chief Judicial Magistrate, Shikohabad, District Firozabad which was treated as complaint and his affidavit as evidence under Section 200 Cr.P.C., besides affidavit the complainant had also filed documentary evidence vis. original cheque returned receipts of registered notice, bank memo and other documents under Section 202 Cr.P.C. on the basis whereof the learned Magistrate found that prima facie case is made out against the applicant, hence passed the order dated 19.2.2016 summoning the applicant to face trial under Section 138 of the Act.

3. It is submitted by the learned counsel for the applicant that the firm of the applicant had informed the opposite party No. 2 that the milk products are of inferior quality which is not liked by consumer, hence the firm of the applicant is not interested in milk product of the complainant and, therefore, asked the opposite party No. 2 to returned the alleged cheques which had been given as security amount. But the complainant paid no heed to the notice, the applicant moved an application before the bank for stop payment of the aforesaid cheques. The application was moved to the bank on 28.11.2014. Therefore, the prosecution of the applicant under Section 138 of the Act would not be maintainable where the cheques have been issued as security amount and became dishonoured. Learned counsel has further led stress that the cheques have been issued by the M/s Chiya Riya Traders, Saharanpur and by its authorized signatory but the complainant had not made M/s Chiya Riya Traders, Saharanpur as party in the complaint.

4. It is further submitted that the notice dated 17.7.2015 which is said to have been sent by the complainant was never served upon the applicant as the notice itself does not show any date and time when it was served upon the applicant. Learned Magistrate has also lost sight of the fac




























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